Yuchai Took Control of Haihong Group
2008-12-29 Source：english.chinabuses.com
Recently, good news came from Guangxi Yuchai Machinery Group Co., Ltd.. The company completed the shareholder changes registration to officially take control of the Zhejiang Haihong Group Co., Ltd, The president of Haihong Group Chen Chunqiang who was appointed by Yuchai, has taken office in Haihong.
Currently, the grim economic downtown discouraged many businesses from new investments. Yuchai at current time enter the hydraulic. It reflects the development demand of itself and its confidence on the sound and healthy development of China. “We have to cope with the economic winter with strategic business vision and also envision the future of the company.” The chairman of the Board of Directors Yan Ping told.
For the past several years, the construction machinery maintains a booming trend. In the short term of past 10 years, the sales of the excavators soared by 19 folds among that the small excavator kept a more strong momentum. But the industry is bottlenecked for the reliance on the imported hydraulic fittings. The construction machine sector of Yuchai Group, the largest production and exportation base for small duty excavators, is limited by such shortage.
Haihong Group, enjoying the distinguished reputation and leading position in the hydraulic industry, have been rated the high-tech enterprise in Zhejiang Province. It is the provincial outstanding technological progress business and is broadly recognized by the industry for its strong absorbing capacity of technology and re-innovation capacity. Its hydraulic products for forklift and loader series have relative strong advantages and a large share in domestic market. Among them the valve type hydraulic products for forklift account for 70% market at home and the valve type hydraulic products for loader reaches 50%. It holds a top position in the domestic hydraulic industry in terms of technology and quality. Its composite index has ranked top in the domestic hydraulic industry for the past 10 years.
Among the 6 industrial sectors of Yuchai Group, the scale of construction machine sector is second after the core business of the engine sector. To grow this sector is very important to the overall development of Yuchai Group. Holding the stake of a hydraulic company has 2 benefits. On one hand, it resolves the bottleneck of the hydraulic parts.On the other, the localization of the small excavator parts is to lower the costs, enhance the product competitiveness and lay a foundation for the growth of Yuchai construction machine industrial cluster as well as achieve the objective of the sector.
To hold the Haihong Group is another successful operation example of Yuchai Group as an investment and financing management enterprise in recent years. In 2006, it successfully carried out the cooperation between H & Q Asia Pacific and the Yuchai Engineering Co., Ltd.. In 2007, Yuchai Group successfully signed a 4 billion Yuan strategic cooperation agreement with China Development Bank and obtained 1.7 billion Yuan loan credit line for projects. Facing the global financial turbulence and weakening of domestic economy, the Yuchai Group understands that the competition in motor and construction machinery industry is going to be more intensive. Therefore, based on the corporate vision of “building a world-renowned brand, large-scale international group”, the group adopted a mixed control model of “strategic control + finance control” to administrate the management of every subsidiary, so as to focus the strength to grow the main business cluster and take control of the quality enterprise that are close together and core auto parts.
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